What Is An Exercise Date?

Exercise date is part of an options contract and states the time by which the option must either be exercised or is disregarded. For European options, the option can only be exercised on the exercise date, whereas for U.S. options it can be exercised at any point up until the exercise date.

If an investor does not choose to exercise the option by the date (i.e. the asset price is in the wrong direction compared to the strike price) then the option contract is just written off and the option cannot be traded.

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